May it be learned that meeting Powell or becoming the next “minefield” of the financial market?
According to Bloomberg, the Fed chairman is expected to be blamed for the plunge in the stock market in December, and he told his aides that he wanted to replace him.
However, it was reported just a few days later that White House staff were arranging a meeting between the two.
On the 27th, the Wall Street Journal cited a government official who reported that Fed Chairman Powell told White House aides that he was open to and acknowledged the presidential antiques meeting.
The report said it was estimated that the assistant was told he was willing to see Powell.
An official told the Wall Street Journal that Powell re-stated that he wanted to meet with the president, but said that if there was such a replacement, he might not refuse.
Although some Fed observers say such chats may ease tensions, most people warn that this could be a minefield for Powell, sometimes leaving the impression that the Fed is subservient to presidential pressure, and there may be someThe discussion was confusing.
”This is a very dangerous meeting,” said Mark Spindel, head of Potomac River Capital, a Washington investment fund.
Spindel said that the market is slumping and that a series of attacks on Powell have not been carried out recently, and the meeting between the two may only make the Fed blockade more difficult.
Spindel also added, “Can I imagine that the words in the rose garden are all right?
Yes, “he said.
But the president may also “make his own reading of what happened”, as he did after other meetings.
Bloomberg reports also pointed out that Donald Cohen, a former Fed Chairman Ben Bernanke who is now a senior official at the Brookings Institution in Washington, also agreed that the meeting poses a major danger to Powell.
Kohn said, “It’s not for the meeting itself, but what happens afterwards.
Kohn also noted, “The risk is that the president translates what he hears and then repeats in public what is not exactly what the chairman wants to convey.
“After raising interest rates nine times in three years, the Fed is working to balance two risks. One is to move too fast to curb US economic expansion, and the other is to move too slowly, resulting in an overheated economy or financial market.
Due to the mild crystallization, anti-interest rate hikes have been expected since July.
After the Fed raised interest rates for the fourth time this year on December 19, putting further pressure on the subdivided stock market, his anger reached a new level.
Bloomberg News democratically reported that the change had previously been accompanied by an aide to remove Powell, which further exacerbated the stock market.
The S & P 500 index fell to its lowest point since April 2017 on the 24th and has fallen by almost 10% this year, with a 17% decline since September 20.
This angered presidents who had encouraged Americans to judge their performance based on the size of their retirement accounts.
On Christmas Eve, he continued to tweet that the Fed said: “The only problem facing our economy is the Fed.
“However, some senior government officials seem to understand the risks of expanding the Fed and have tried to stop the debate.
Mick Mulvaney, the soon-to-be-appointed chief of staff, said on Dec. 23 that it could be said that “now he has no ability” to fire the Fed chairman.
On December 26, Kevin Hassett, chairman of the White House Council of Economic Advisers, told reporters that Powell’s position was “100%” secure.
Since Bill Clinton, the U.S. President has avoided publicly announcing the Federal Reserve and generally does not put pressure on him behind the scenes.
However, the Fed chairman’s meeting with the president was not unheard of.
Greenspan, Bernanke, and Yellen have all attended such gatherings, usually to present the president’s economic prospects to the crisis, or to discuss re-election or departure.
Even in the current hostile environment, meeting now may have some benefits for Powell.
”Powell’s opportunity is that he can face his chief reviewer and deepen the president’s understanding of why the Fed is taking current action,” Cohen said.
”Both individuals are excellent, and if they are going to meet and talk, they will be in harmony.
Obviously I like listening to reasons, arguments and analysis, as does Powell.
So I think if they meet, it will be a very productive dinner, “Hassett said in an interview with 南宁桑拿 Fox Business.